Spain: Homage to Catalonia (of sorts!)
The Catalonian election results won’t weigh on the euro or EU financial assets in the short term. Whether this holds in the longer term depends on two factors. First, Rajoy’s and his Peoples Party’s (PP) readiness for dialogue, compromises and release of all Catalonian leaders from jail. Second, the Catalonian Independents eschewing another reckless dash for freedom from Spain and working towards a more autonomous status within Spain. Frankly, both sides have everything to win and everything to lose. But getting there, given the political process, will take several months.